British government sells £13bn Northern Rock loans to investment firm

The British government has sold £13bn of Northern Rock mortgages to investment firm Cerberus Capital Management.

UK Asset Resolution (Ukar), the “bad bank” created in 2010 to run down the loans in Northern Rock and Bradford & Bingley, said the sale would include residential mortgages and unsecured loans from the legacy book of Northern Rock Asset Management (NRAM).

Proceeds would include a £280m premium over book value at June 30 2015 and “delivers value for money for the taxpayer”, the bank claimed.

Late last month, Ukar also revealed that it had repaid £500m to the British government in the six months to September 30.